Outsourcing has a bad name – a way of cutting labour costs by employing people in India and China (over three million US jobs will be lost to this trend by 2015). But there’s also a growing move for nations to outsource everything from their military to postal services that, properly harnessed, could raise standards and redefine what makes a country. This is who we would employ.

Which territories and nations are due their turn in the international spotlight? Monocle reveals five areas – from an EU island nation to a sprawling South American state – that will be in the headlines for all the right reasons over the coming year.

Are you familiar with all of these leaders? Monocle profiles three whose influence will continue to grow and grooms two necessary leaders of its own.

They cost just €70 to make, but Hezbollah rockets have forced some Israeli towns to be abandoned. So Israel is building Iron Dome, an anti-missile shield. If it works, it could change the pace of diplomacy in the region and beyond.

From making life a misery for passengers at airports to making war with their neighbours, Monocle takes a look at the organisations, countries and people who are destined to hit the headlines for all the wrong reasons in 2008.

In Germany home-owners can generate power and sell it to the national grid. Genoa runs an inspiring van-share scheme that’s cutting congestion and in Estonia they have adopted a simple fiscal reform that’s kept the economy booming. Ministers and mayors hoping for re-election in 2008 should study these public policy initiatives with care.

In a world of disposable fashion and bad service, there are some stores that do get it right, and are seeing their profits boom. We profile five retail giants that should act as benchmarks for other floundering businesses.

If you’re entering 2008 with a handsome bonus, a generous inheritance or a fat payoff, *Monocle* has identified 10 business opportunities worthy of investment. A mixture of fresh ideas and proven concepts ready for other markets, our suggestions will appeal to everyone from the small-change armchair investor to the adventurous investment bank.

Kyoto is the traditional home of Japanese artisans who make highly detailed ceramics and perfectly woven silks. That same set of skills has also helped it become the country’s hi-tech heartland.

The future of television is pin-sharp, pitch-perfect and high-definition. As broad-casters struggle to brush up their sets, soap stars and news anchors to shine under HD’s critical spotlight, the new technology is also set to force a welcome return to old-fashioned craft in TV. We paid a visit to one of the world’s most polished channels that has never let its standards drop, to learn the art behind Arte TV.

Looking forward to 2008, we asked five creative contenders to peer into their cultural crystal balls and explain what they see. From a web guru with designs for life to an established art collector going out on a wing in Beijing via one of next year’s most electrifying musical talents, *Monocle* tips the talent that tells the future of entertainment and the arts, and how we’ll be enjoying both.

Austria is reinvigorating its brand and stealing some of Switzerland’s reputation for being the home of Alpine modernity and great healthcare. Nowhere epitomises the trend more than the Lanserhof.

Our design talents to watch for 2008 and beyond run the gamut from the creators of a new regional jet to the designer of great office-cum-daywear. All seem united by a passion for simple, pared-down good looks.

Jonathan Raban, Raúl Abreu Lastra and Ferruccio de Bortoli tell Monocle who they would like to hear less about next year.

Colin Bradford, Simon Anholt, Paula Scher and Ilkka Kanerva on 2008.

Surin Pitsuwan, Hanna Anbar and Mark Leonard give their views.

From the ancient Greeks onwards, wise governments have seen the benefits of outsourcing. But what would a modern state look like if it put all of its ministries out to tender, employing the best foreign governments and private companies to run them? This is *Monocle*’s cabinet reshuffle.

Global forecasting requires an expert view, so we called on four leading thinkers for a considered analysis of the future: Michael Axworthy, former head of the Iran section at the British Foreign & Commonwealth Office, looks at how the diplomatic turmoil surrounding that country might play out; Michael Shifter, vice-president for policy at the Inter-American Dialogue, foresees a Latin America free from US dependence; Malcolm Cook, programme director for the Asia Pacific region at the Lowy Institute, outlines the dilemmas China will face as it embraces superpower status; and Peter Reid, vice-president for communications at the Carnegie Endowment for International Peace, predicts a more liberal approach to foreign relations in a future Clinton White House.

*Monocle* asked three influential economists for their predictions for 2008: Christian Gattiker-Ericsson, head of equity and strategy research at Bank Julius Baer, sees more pressure for economies reliant on ageing workforces; Brian Redican of Macquarie Bank recommends working with China, rather than against it; and Lars Seier Christensen, co-CEO of Denmark’s Saxo Bank, believes SWFs will shift the world’s economic balance in favour of Asia.

Victor La Fleur’s unique approach to sourcing brands from across the world has enabled him to build a miniature clothing empire in his home town of Verbania – and to predict what is going to sell in 2008.

Provenance is set to become key as we turn our backs on products made at dodgy factories in who-knows-where. Consumers want authenticity and, as many companies have found, they’re happy to pay for it.

Those wishing to follow the growing global trend for simple, ecologically sound living could have no better example than Professor Yoshifumi Nakamura and his weekend haven, tucked away in the hills of Japan’s Nagano region.

Amanda phones, Tretorn shoes, Leica cameras, iPod Touch, must-have books and magazines, plus wooden skis - our holiday gift guide has it all.

Japan may not be the first country that springs to mind when you think of the best traditional mechanical watches, but the Grand Seiko series, relaunched in 1998, has found a loyal following in Asia.

Around 700km north of Bangkok, Chiang Mai is Thailand’s second largest city, and its increasingly metropolitan air is acting as a magnet for those in the creative industries. The neighbourhood of Nimmanhaemin, in the north-west of the city, is particularly attractive for its plethora of galleries, shops and cafés.

CNN’s man in Baghdad, Michael Ware is one of few western journalists to have reported from insurgent camps. An avid rugby fan, we met him in Paris where he was covering the World Cup. He selects the touristy Thai restaurant Asian for his last meal.

Less than four years after joining the European Union, and having adopted the euro just under a year ago, Slovenia will take on the rotating EU presidency in the first half of 2008. It is a massive challenge for a country of just two million inhabitants. But, as *Monocle* finds out, Slovenia’s prime minister, Janez Janša, believes his country is equal to the task.

A perfect day: How often do you sit and plot what your perfect day would look and feel like? Do you try to imagine what sounds will wake you? Conjure up what smells will pull you out of bed? Do you think about what would improve the way you cross towns, country and continents? I do it all the time.